Investing Doesn’t Have to Be Complicated – This 1 Stock Is Proof

TD Bank stock has been a reliable and resilient performer, creating long-term wealth for investors.

Key Points
  • • Amid geopolitical tensions including the Middle East war and Canada/US trade disputes, TD Bank's regulated status provides inherent stability and resilience through market crises.
  • • TD posted record Q3 2026 earnings of $4.7 billion with a 16% return on equity, demonstrating strong revenue growth across its Canadian banking, wealth management, and wholesale banking divisions.
  • • The stock yields 2.67% with a dividend that has grown nearly 800% over 26 years, backed by excess capital for future growth, buybacks, and dividend increases.

The war in the Middle East and the Canada/U.S. trade war — the uncertainties and risks these ongoing events have on investing and the markets are potentially massive. It makes the whole process of investing seem extremely complicated and overwhelming.

But, remember, we have been here before. The details might have looked different, but to a certain extent, a crisis is a crisis. The potential for these crises to have increasingly negative effects on investing in stocks is real. This is where we have to remind ourselves to turn to those stocks that have proven their resilience over the long term and through many critically uncertain and dangerous times.

pregnant mother juggles work and childcare

Source: Getty Images

Banks are regulated

The Canadian governments have regulated the banks, which is a big plus for stocks like TD Bank. Because of this, Canadian banks are inherently set up to withstand a lot. This feature, which is by design, translates into a top investing opportunity — one that makes Toronto-Dominion Bank (TSX: TD) stock a staple for long-term resilience, growth, and predictability.

TD Bank stock: Reliably resilient

Let’s take a look at Toronto-Dominion Bank, the bank stock that has proven itself time and time again. It has shown resilience in every market, good and bad. It has also shown that it has staying power. And it has shown that investing in it can be as simple as buying it, forgetting about it, and enjoying the dividend payments.

This simple fact has been demonstrated through time. As you can see from TD Bank stock’s price graph below, it has survived a lot, including the dot-com bubble in the early 2000’s, the financial crisis in 2007/2008, and the pandemic in 2020. There are many more examples, but the point is that TD Bank stock has not only survived but thrived.  

Recent results

In TD Bank stock’s most recent results, the third quarter of fiscal 2026, the bank continued to prove its strength and resilience. Toronto-Dominion Bank stock posted record earnings of $4.7 billion, or $2.77 per share. Record revenue in Canadian personal and commercial banking business, wealth management, and wholesale banking drove these results.

These results demonstrated TD Bank stock’s ability to drive revenue while also cutting costs. And the results are impressive, as the bank’s return on equity (ROE) came in at 16%, which was an increase of 280 basis points. All of this points to the fact that investing in this Canadian bank stock isn’t complicated. It’s easy, dependable, and reliable.

Dividend growth

At TD stock’s current price, it’s yielding a very respectable 2.67%. This yield is underscored by the fact that the dividend is well-covered and it has grown nicely over time. In fact, TD’s dividend has grown by almost 800% in the last 26 years. Also, the bank currently has a sizable amount of excess capital that gives it the flexibility to pursue organic growth, share buybacks, and dividend growth.

The bottom line

TD Bank stock is a stock to own in the good times, the bad times, and all the times in between. With a solid foundation, strong cost management, and strong growth prospects, investing in this bank stock is as simple as buying it, watching it grow, and collecting dividends. While there is risk in owning any stock, TD Bank stock is one that has a very favourable risk/reward dynamic.

Fool contributor Karen Thomas has positions in Toronto-Dominion Bank. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

More on Bank Stocks

Real estate investment concept with person pointing on growth graph and coin stacking to get profit from property
Stocks for Beginners

Canada’s Job Market Could Decide What Happens to Mortgage Rates Next

Canada’s jobs report can influence mortgage expectations, but fixed and variable rates move through different channels.

Read more »

some investments are riskier than others
Stocks for Beginners

OSFI’s Risk Outlook Could Test Canadian Banks: Royal Bank Looks Prepared

RBC enters a more cautious regulatory environment with strong capital and substantial dividend coverage.

Read more »

A person uses and AI chat bot
Bank Stocks

Royal Bank Stock: Why I’d Buy It Now for the Next 5 Years

Royal Bank just posted record profit and an 18% ROE. Here's why RBC stock looks like a smart buy for…

Read more »

customer uses bank ATM
Bank Stocks

I Found the Ideal Retirement TFSA Stock Paying 3.6%

Bank of Nova Scotia (TSX:BNS) might be worth a spot in your TFSA on the dip.

Read more »

Safety helmets and gloves hang from a rack on a mining site.
Stocks for Beginners

Canada’s Jobs Report Lands Friday: This Bank Stock Could Move First

Friday’s jobs report could shake CIBC shares, but borrower stress matters more than one headline number.

Read more »

senior couple looks at investing statements
Bank Stocks

The OAS Clawback: How Canadians Can Plan Around It

Earn too much in retirement and the CRA quietly takes your OAS back. Here's how the clawback works and 6…

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Bank Stocks

How to Use Your TFSA to Potentially Double Your Annual Contribution

Your TFSA limit is $7,000, but you may be able to put $14,000 to work this year. Here are 3…

Read more »

customer uses bank ATM
Stocks for Beginners

Your GIC Is Maturing as Rates Rise: I Wouldn’t Automatically Lock It Up Again

A maturing GIC may offer an attractive guaranteed rate, but long-term investors could sacrifice considerably more growth by renewing automatically.

Read more »